Job Losses Loom in Nigeria As Diesel Price Jumps to N320/Litre

• The price of diesel has been increased by Nigerian marketers according to latest reports from media outlets
• In fact, the price of diesel ranged from N303 to N320 per litre at several filling stations in Lagos and parts of the country
• Many people believe that this will have serious adverse effect on the production sector as they mostly rely on diesel to power their machines

Things are likely to become harder for Nigerians as fuel marketers increased the price of Automotive Gas Oil, also known as diesel.

The price has been increased to N320 per litre according to Punch Newspaper.

The price of diesel has surged by over 40 per cent so far this year from an average price of N225 per litre in January.

As a result of this, many business owners have expressed fear that the spike in diesel price might force more businesses to sack employees amid rising energy costs.

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Diesel is mostly used by businesses, especially manufacturers, to power their generators amid a lack of reliable power supply from the national grid. Many vehicles transporting goods and people across the country also use diesel.

Subsidy removal: Petrol price could rise to N1,000 per litre, DPR alerts Nigerians

Meanwhile, the Department of Petroleum Resources (DPR) issued a warning that when the petrol subsidy regime comes to an end, Nigerians may have to spend as much as N1000 per litre for the product if an alternative energy source is not provided.

This was disclosed by the DPR director, Sarki Auwalu, at the Second Quarter, 2021 Business Dinner of Petroleum Club Lagos.

In a statement seen by Legit.ng on the DPR website, Auwalu, who was responding to questions and comments generated by a paper he delivered, said Nigeria was spending so much on petrol subsidy.

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What must be done to keep petrol at N162 per litre

In an earlier report by Legit.ng, the group managing director, Nigerian National Petroleum Corporation (NNPC), Mele Kyari, said smuggling of petroleum has to stop to avoid the rising subsidy payments that have kept the country in a state of bleeding.

He said Nigeria cannot afford the payment of subsidy with the high rate of daily consumption being recorded which is due to the illegal export of petrol through the nation's borders.

According to him, the menace of smuggling has to stop for the government to maintain the current N162 per litre.

Source: Legit.ng